Another NoKo surprise hit the markets yesterday after the rogue dictatorship went and tested an alleged hydrogen bomb, sending futures down slightly over the long weekend. That led to a sharp sell-off yesterday, but one that is consistent with the pattern of breaks off the peak when the market rallies up near or to new highs.
The NASDAQ Composite Index was smacked all the way back down to its 10-day moving average yesterday on heavy volume. By the close, however, it took back about half of those gains and ended the day with a final print that was just about mid-range. This can therefore be viewed as supporting action even though the index did in fact post another distribution day.
Today the NASDAQ started things out with an upside gap that failed to take back all of yesterday’s gains but held above near-term support along the 10-dma. Volume was lighter. For the most part the action remains choppy.
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